Chapter 16 Monopolistic Competition

Chapter 16 Monopolistic Competition

Author: Matthew Lonn

Students will examine the characteristics of a firm that is monopolistically competitive.

Students will draw graphs of monopolistically competitive firms in the short and long run.

See More
Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

Begin Free Trial
No credit card required

27 Sophia partners guarantee credit transfer.

245 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 21 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.


Questions you should be able to answer after the lesson.

How is a monopolistically competitive firm different and similar from the other three types of market structures?

How do I draw a monopolistically competitive firm making a profit, taking a loss and breaking even?

What happens to monopolistically competitive firms in the long run and how would I draw that?

What is excess capacity?

Chapter 16 Notes

Drawing Monopolistic Competition